By Northeast Florida Association of Realtors (NEFAR)
1 The June issue of Florida Trend reported that “While the day-to-day headlines will continue to focus on the pain in the market, the broader context of Florida’s real estate story is somewhat more hopeful. Housing prices have, in many markets, adjusted quickly to more or less 2003 levels. The free fall in prices has given way to the emergence of a slow, ‘bumping-along-the-bottom’-type market that will see inventories of for-sale homes shrink back to normal levels over the next couple of years.”
2 There are bargains to be found. According to Forbes.com, “Jacksonville didn’t go through an obscene speculation boom, making its recovery cycle far less daunting than other Florida spots. Job growth isn’t outstanding, about average for the cities we measured, but the foreclosure rate is lower than any of the Florida cities we looked at, making the high inventory rate more likely to improve than get worse.”
3 In the March 26 issue of Financial News & Daily Record, Florida economist Hank Fishkind said that although Northeast Florida isn’t immune to the recession, “it’s non-realestate-based economy keeps the area more insulated than other parts of the country. The area’s banking, insurance and ‘back office’ industry helps negate some of the real estate slowdown…Jacksonville is still better off than other parts of the state where growth is virtually stagnant…The housing market will be better in 2009 and better still in 2010.”
4 On August 3, The Florida Times-Union reported that the first half of 2008 ended with “monthly upticks” in the numbers of new and existing home sales and median prices. “It’s a powerful indicator of market momentum that we’re starting to move in a (positive) direction,” said Ray Rodriguez, owner of the Real Estate Strategy Center of North Florida, Inc. “Time will tell if it’s a trend, but it’s something good to value for the time being.”
5 Job growth is anticipated in the Jacksonville area. Jacksonville was ranked #26 in Forbes’100 Best Cities for Jobs in 2008.
6 The Florida Times-Union recently reported that area inflation is less than the rest of the country. The paper also reported that giant shipping company, Mitsui O.S.K., will add 1,800 new jobs to Northeast Florida this year with approximately 4,000 spin-off jobs. According to Ron Littlepage, “…those new jobs will help the housing market rebound.” Littlepage also reported that another Asian shipping company, Hanjin of Korea, could have another terminal up and running in three years. “That, of course, would mean even more new jobs that would further strengthen Jacksonville’s economy.”
7 Unemployment rates - and interest rates - are low. And the good news continues. According to The Florida Times-Union, “Deutsche Bank has chosen Jacksonville for a 1,000-employee office, giving the city another high-impact addition to its financial services industry.” Jerry Mallot, executive director of Cornerstone - an economic development partnership program of the Jacksonville Chamber of Commerce - “called Deutsche Bank a ‘major deal’ for Jacksonville…Deutsche Bank will fill out its 1,000-employee hub by the end of 2011 with an average wage of $49,200.”
8 We have an excellent overall quality of life. In February, Bizjournals ranked Jacksonville ninth in its top ten list of the nation’s 50 largest metro areas for “least stressful areas.” The ranking was based on pollution levels, climate, crime, unemployment rate, finances (including income levels and monthly home payments) and health.
9 Northeast Florida real estate is more affordable and more competitive than most areas of the state. However, with experts predicting that our local housing market will hit the bottom this year, these great prices aren’t going to last indefinitely.
10 Consumers with good credit can still easily get loans. There are currently great opportunities out there for buyers and, according to the experts, all of these signs are indicating a turnaround.
